Daytona approves grant for downtown hotel, restaurant

The spot on Beach Street between Orange Avenue and International Speedway Boulevard will house a boutique hotel, Italian restaurant, take-out pizzeria and retail space.

EILEEN ZAFFIRO-KEANSTAFF WRITER

DAYTONA BEACH -- Beach Street is about to bolt forward with more of the new development city leaders have been chasing after the past few years.

In about six weeks, a prime spot on the riverside street that has been mostly vacant for more than a decade is going to come back to life with a large new building that will house a boutique hotel, Italian restaurant, take-out pizzeria and more than 1,600 square feet of retail space.

"I've looked for this investment all over the state," said Paul Zappitelli, the owner of the property. "It's such a high-energy feeling. The excitement is sure there."

Zappitelli credits city staff with winning him over on the idea to use the building at 128 S. Beach St., and supporting him. One piece of that support came through at Wednesday's City Commission meeting, when commissioners OK'd $85,000 in city grants that will help cover some of Zappitelli's renovation costs.

The city also gave Zappitelli a helping hand in August, when city commissioners passed a measure that will allow hotels in the core downtown area.

"We'd like to see the smaller boutique hotels flourish in that area," said city Redevelopment Director Reed Berger.

Half of the 12 hotel rooms are already available, and the restaurant and pizzeria are slated to open by the end of next month, Zappitelli said in an interview after Wednesday's commission vote. The street-level retail space that's split into two storefronts will be leased out at some point in the future, he said.

The spot on Beach Street between Orange Avenue and International Speedway Boulevard had been the site of McCrory's dime store. About five years ago, that aging dime store building was leveled and a Colorado-based real estate company built the current building.

The plan was to use the structure for retail on the first floor and apartments and condominiums on the second and third floors. The nation's economic meltdown stalled the project, and the property was foreclosed on two years ago.

A bank gained control of the site, and asked almost $3 million for the property. Zappitelli was able to buy it for $1.67 million earlier this year.

Zappitelli's roots are in Canada, and he recently moved here with his wife, Jennifer, and 9-year-old son, Jakson. His parents, Tony and Connie Zappitelli of Port Orange, ran restaurants and motels in Canada, and at one time were co-owners of a 400-room Sheraton hotel and conference center in Niagra Falls.

Paul Zappitelli was the duty manager for that Sheraton, and focused on the food and beverage side of the business before it was sold in 2007. He said he plans to use that experience to make his new restaurant, Zappi's Italian Garden, one of the nicer Italian eateries in the area.

He said the restaurant will have seating for 186 people that will be spread between the dining room and outdoor seating in a courtyard he's creating between his building and the building to the north. The entrance of the restaurant will face that courtyard.

He currently has people living upstairs in six units being used as apartments that will eventually become hotel rooms.

By the time his renovations are complete next month, he said he will have invested $1 million overhauling the building. He said he's had to seal leaks, paint and tackle extensive roof work.

One of Zappitelli's business neighbors, Colette DeLannoy, is excited to see the building just south of hers coming back to life. DeLannoy, who has run an antique shop on Beach Street for more than 30 years, said she doesn't recall the old dime store site being used for around 15 years.

Zappitelli is aware Beach Street has struggled in recent years, but he's undaunted.